Terms of Reference for a Senate Inquiry into the Future of Rugby Union in Australia

[Alison]

So; David Hawkins and others at the senate inquiry have clearly shown that the current ARU board has acted contrary to the constitution, to my way of thinking at least. IF no actual illegalities can be uncovered, does anyone know where any over sight of their actions might be referred? Or is the matter of abiding by the ARU constitution solely for it's voting constituents to decide in a no confidence motion?

Surely ASIC would be interested? If they have to file accounts there must be some regulatory provisions around that. If it’s just up to the constituents, we have no hope of anyone bringing them to account.

[Bakkies]

Surely ASIC would be interested? If they have to file accounts there must be some regulatory provisions around that. If it’s just up to the constituents, we have no hope of anyone bringing them to account.

They have to investigate if it is referred. A truckload of paperwork will be handed over to them.

In regards to the ARU breaching their own constitution that's a matter for the Australian Sports Commission surely

[shasta]

They have to investigate if it is referred. A truckload of paperwork will be handed over to them.

In regards to the ARU breaching their own constitution that's a matter for the Australian Sports Commission surely

Yes, unless the ARU can quarantine and demonstrate it's distribution of federal govt funding in a manifestly better way than have shown their distribution of other moneys. After Senator Reynolds' statements on the issue they are likely crafting a massive spreadsheet on it as we speak.

[Bakkies]

The WA Government's submission is now up

[Bakkies]

Yes, unless the ARU can quarantine and demonstrate it's distribution of federal govt funding in a manifestly better way than have shown their distribution of other moneys. After Senator Reynolds' statements on the issue they are likely crafting a massive spreadsheet on it as we speak.

That's like expecting them to behave and be just

[Jules]

The WA Government's submission is now up

Reading that I can't believe that the ARU just ignored the WA government!! FFS how is that in anyway acceptable business management!!

[jackster]

Reading that I can't believe that the ARU just ignored the WA government!! FFS how is that in anyway acceptable business management!!

totally agree

[jackster]

Do you find it interesting that Rob Clarke was still a Director on the MRRU Board having been appointed in 15 Aug 2013 during his tenor as CEO, and stayed on the board until 1 May 2015 - right in the middle of the negotiations of the sale of the Rebels to Andrew Cox . It concerns me that: 1. Clarke was COO at ARU and was driving the sale of the Rebels to Cox ;
2. while he was a Director of the Rebels
3. it appears that he did take that seriously since the extra payments to the Rebels were clearly in the interests of the Rebels,
4. did Pulver / ARU board understand that Clarke was duping them so?

[GIGS20]

5 assuming they were aware, what was the price that bought their ignorance?

[Moz]

Hard hitting opening to the WA Government's submission

It appears that the confidence that the Western Australian Government took from the ARU s continued assurances relating to the Western Force’s future was misplaced.

The level of trust Western Australians have in the ARU is lower than the State of Western Australia has experienced before in sport.

[Bakkies]

Alan Winney's is now up. Got the popcorn ready.

[zimeric]

this comment got me in the Feels... "The ARU's level of trust by Western Australians is at a lower level than the State of Western Australia has experienced before in sport. There is no precedent where the Western Australian Government's trust and confidence in its interactions with a National Sporting Organisation has been so misplaced as has occurred with the ARU."

Amen!

[Bakkies]

Delicious stuff. The ARU fully nailed now?

ALAN WINNEY STATEMENT ON THE 2014 BID FOR THE MELBOURNE REBELS
Following comments made at the Senate Hearings currently underway in Perth this statement has been
prepared and released by Alan Winney to provide greater clarity around matters relating to negotiations that
took place in 2014 wherein the ARU was offering to sell the Melbourne Rebels Rugby Club (Rebels).

I confirm that I was approached by the Australian Rugby Union (ARU) to discuss a purchase of the Rebels in
late May 2014. The ARU indicated to me that they had approached me as a prospective buyer because they
knew that I remained a strong financial supporter of the club and had taken regard of the fact that I was a
founding Director and shareholder (2010-2013) of the Rebels, having held 28% of the initial equity. Discussions
with the ARU took place during the 2014 mid-year test window and continued over the end of the 2014 Super
Rugby season. Negotiations on behalf of the ARU and the Rebels were handled by Bill Pulver and Rob Clarke.

A syndicate of interested investors was assembled under the initial name of Melbourne Rebels Bid Consortium
(Bidco), which became known as the Winney Consortium during the negotiation period. This group was
comprised of members of the Melbourne business community who had a strong affinity with rugby, it also
involved financial support from existing rugby interests based in Europe.

Bill Pulver signed an exclusivity agreement on behalf of the ARU on 5 June 2014, due diligence commenced on
that date and exclusive negotiations continued for approximately seven weeks. This Consortium submitted a
bid to the ARU on 18 July 2014 to buy the Rebels, with the ownership to change with an effective date of 1
January 2015. The ARU came back to the Consortium with a counter offer on 22 July 2014.

The Winney Consortium bid to buy the Rebels from the ARU was to pay $100 for the Super Rugby participation
licence and the club’s intellectual property. It proposed that the Consortium would then recapitalise the club
with $6 million in new equity, to take effect from the handover date. The Consortium advised that all matters
up to 31 December 2014 would remain as the responsibility of the ARU and that all matters related to the post
31 December 2014 period would be the responsibly of the buyer. The buyers would absorb the anticipated
2015 losses, but were seeking the same uplift in TV rights payments in 2016-2020 period that would be paid to
the other Australian Super Rugby teams. This uplift was estimated at $2million p.a. Some player concessions
were requested from the ARU, but no other additional special support payments were requested or offered.
The Consortium assumed in its bid that the losses incurred by the Rebels in its first four seasons would
continue in 2015, given that it would be too late to make the substantive changes needed. A budgeted loss of
approximately $3 million for 2015 was agreed as realistic by both parties. The ARU did not appear to
undertake any due diligence on the Consortium but did request $1million be placed in trust to protect the ARU
from an event of Moral hazard, the ARU withdrew this requirement during the negotiations.

The ARU counter offer to the Consortium was an outcome that was over $4.5 million worse in 2015 and a
further $1million p.a. worse in the 2016-20 period compared to the deal that had been put on the table by the
Consortium. It would have meant that the Rebels would burn the full $6 million in new equity well before the
end of 2015. Given the ARU position, and its unwillingness to negotiate on key terms, the Consortium
withdrew from these negotiations on 25 July 2014.

The Consortium requested, and received confirmation from the ARU, that the correspondence relating to the
bid and of the subsequent withdrawal of interest, had been provided to the ARU Board and that the ARU
Directors were involved in the decision-making process. The Board of the Melbourne Rebels, via the CEO Rob
Clarke, were also forwarded copies of the bid that was put to the ARU. These various documents were
distributed without any confidentiality constraints attached to them.

24 October 2017

[jackster]

Oh WOW

[wasmute]

I love the last line:

The Consortium requested, and received confirmation from the ARU, that the correspondence relating to the
bid and of the subsequent withdrawal of interest, had been provided to the ARU Board and that the ARU
Directors were involved in the decision-making process. The Board of the Melbourne Rebels, via the CEO Rob
Clarke, were also forwarded copies of the bid that was put to the ARU. These various documents were
distributed without any confidentiality constraints attached to them.

So much for being confidential documents that the FUARU couldn't discuss!